Loan interest rate may hike soon as HDFC enhances lending rates

India’s largest private sector lender, HDFC Bank, has hiked its marginal cost of funds-based lending rates (MCLR) by 5–15 basis points (bps) across tenure, effective May 2023. The benchmark one-year MCLR for HDFC Bank’s key loans, such as home loans, auto loans, and personal loans, has increased to 9.05 per cent, according to the bank’s website.

The bank’s overnight MCLR presently remains at 7.95 per cent. Its three-month MCLR is now 8.40 per cent, while its one-month MCLR has been raised to 8.10 per cent. The lender’s MCLR for loans up to six months is currently 8.80 per cent, while its MCLRs for loans up to two years and three years are 9.10 per cent and 9.20 per cent, respectively.

HDFC Bank hikes lending rates effective today (8 May 2023)

Overnight: 7.95%

1 Month: 8.10%

3 Month: 8.40%

6 Month: 8.80%

1 Year: 9.05%

2 Year: 9.10%

3 Year: 9.20%

HDFC Bank is the latest bank to revise its MCLR even as the Reserve Bank of India (RBI) kept the repo rate unchanged in its recent policy meetings in April. Following this, the Bank of Baroda (BOB) and Canara Bank revised their MCLRs.

As of May 5th, HDFC Bank’s market cap stood at over Rs 9.07 lakh crore, while HDFC’s m-cap was at over Rs 4.95 lakh crore.

Bank of Baroda hikes its MCLR by 5 basis points (bps) in select tenors, effective April 12. For overnight tenor, the lender raised its MCLR by basis points to 7.95 per cent from 7.9 per cent earlier.

With effect from April 12, Canara Bank increased its one-year and six-month MCLRs by 5 basis points to 8.45 per cent and 8.65 per cent, respectively. The bank has not changed its MCLRs for different tenors.

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